Respirate

Fundamentals Don't Support Oil at $55-60 a Barrel

Agree w/ Nathaniel C. When prices decline it's a pretty safe bet they'll rise again, making it a nice speculative trade. It's even more attractive because you never know when news headlines will give you a bump. Today we had violence in Nigeria aimed at oil interests, and a refinery fine in Pennsylvania. Tomorrow it could be one of any number of things, such as Iran acting up. Since we're probably at the bottom end of consumption, oil will likely edge up from here, fundamentals or not.

--R